OXY vs XLE: Correlation
Occidental Petroleum (OXY) and Energy Select Sector SPDR Fund (XLE) show a very strong relationship: their 3-year correlation of weekly returns is 0.84.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are OXY and XLE?
Over the past 3 years, OXY and XLE moved with a correlation of 0.84, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.82) sits close to the 3-year figure. Over 5 years the correlation is 0.81, and the annualized covariance of weekly returns is 589.0 %².
XLE is one of the assets that tracks OXY most closely: it ranks #2 out of the 38 assets we track against OXY. Their recent paths diverged sharply: over the last 12 months XLE outperformed by 15.1 percentage points (+28.9% for OXY against +44.0% for XLE). Stability stands out here, with the rolling one-year correlation confined to 0.79 through 0.91.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
OXY vs XLE: side by side
| OXY (Occidental Petroleum) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +28.9% | +44.0% |
| 5-year return | +150.8% | +206.7% |
| Volatility (ann.) | 30.6% | 23.1% |
| Beta vs S&P 500 | 0.13 | 0.27 |
| Max drawdown (3Y) | -46.9% | -20.1% |
| Market cap | $59.1B | – |
| P/E (trailing) | 17.3 | – |
| Dividend yield | 1.71% | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | Energy | Sector ETF |
XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Year-by-year returns
| Year | OXY | XLE |
|---|---|---|
| 2022 | +119.1% | +64.3% |
| 2023 | -4.1% | -0.6% |
| 2024 | -15.9% | +5.6% |
| 2025 | -14.9% | +7.9% |
| 2026 | +45.2% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLE holds OXY at a 2.52% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are OXY and XLE good diversifiers for each other?
No: a correlation of 0.84 means OXY and XLE tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between OXY and XLE?
As of 2026-08-27, the correlation of weekly returns between OXY and XLE is 0.84 over 3 years, 0.82 over 1 year and 0.81 over 5 years.
Is XLE a good diversifier for OXY?
No: a correlation of 0.84 means OXY and XLE tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.84 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/oxy-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/oxy-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: OXY correlations · XLE correlations
